New York loosens limits on payroll deductions — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

New York loosens limits on payroll deductions

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in Employment Law,Human Resources

The New York General Assembly has amended Section 193 of the New York Labor Law to allow ­employers to make payroll deductions for a wider variety of items. The amendment lets employers deduct the cost of an array of employee benefits previously barred by the state code.

The new law allows deductions for:

  • Tuition, room, board and fees related to certain educational institutions
  • Certain child care expenses
  • Other transportation, charitable and health related payments.

The expenses must be for the em­­ployee’s benefit and no deductions are permitted without the ­employee’s written consent. Employers must detail (in writing and in advance) what the deductions are for and when they will be made.

Employers may now also deduct wages to correct mathematical or clerical payroll errors. Before Section 193 was amended, employers that overpaid employees in error could not deduct the overpayments from the employee’s subsequent pay.

The new amendment also permits employers to recapture wage or salary advances.

The changes took effect Nov. 6, 2012, and will expire in three years unless extended. Learn more at "New York broadens payroll deductions, adds employer requirements."

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